International Journal of Management, Economic and Accounting
Vol. 3 No. 1 (2025): February 2025

Analysis of Exchange Rate and Stock Price Fluctuations in Indonesia

Eldo Anggi Ferdien Saragih (Unknown)
Dewi Mahrani Rangkuty (Unknown)
Rusiadi (Unknown)



Article Info

Publish Date
19 Feb 2025

Abstract

This study aims to analyze the relationship between exchange rate fluctuations and stock prices in Indonesia. Using daily data from 2010 to 2023, the analysis was carried out through the multiple linear regression method to identify the impact of exchange rate changes on stock prices in the Indonesian capital market. The results show that there is a significant relationship between exchange rate fluctuations and stock prices, where a decrease in the exchange rate tends to have a negative impact on stock prices, especially in import-dependent sectors. In addition, this study also found that there was a difference in stock price response to exchange rate fluctuations between companies listed on the stock exchange and large and small market capitalizations. These findings provide important insights for investors and policymakers in making decisions related to investment and risk management in the stock market. This research is expected to contribute to the literature on financial market dynamics in developing countries, especially Indonesia.

Copyrights © 2025






Journal Info

Abbrev

IJMEA

Publisher

Subject

Economics, Econometrics & Finance

Description

The International Journal of Management, Economic and Accounting is an academic journal published bimonthly. This journal features the latest research in the fields of management, economics, and accounting, covering topics such as strategic management, micro and macroeconomics, corporate finance, ...